What the market expected from Javier Milei but had no response and a declaration of love with complaints

The truth is that, although Milei said that seeks to match the inflation rate with that of monetary policy and assured that Clean up the balance sheet of the Central Bank (BCRA) It is a key step to lift the restrictions, once again he avoided giving an estimated date to take this step and he did not talk about the need for dollars that the Government has to achieve this objective, he did not make any reference to the Central Bank’s reserves nor did he talk about Negotiations with the International Monetary Fund (IMF) to achieve a new disbursement (although there was news on Thursday).

The market does not want only signals, like the Bases law, the transfer of liabilities from the BCRA to the Treasury, a sustained fiscal surplus and the entry of a hardened deregulator. “What he wants, to ensure that all this is sustainable, is for dollars to come in,” he told Ambit a city fountain.

A declaration of love with some complaints

Just as Guillermo Francos is Milei’s great political articulator, Claudio Zuchovicki He is your intermediary with the city and the relationship is well-oiled. The market believes Milei and the Minister of Economy, Luis Caputo, and wants to support the economic project because it believes that it tends to favor greater “freedom” in business and is pro-capital..

In addition, looks with enthusiasm at deregulation because he believes that this will allow him to do new business, but there are some elements that worry him: the main one is the lack of dollars and the other, the rampant recession, which threatens consumption and worsens the business climate.

Even the president himself acknowledged during his speech that they had to carefully manage this variable so that, while the amount of money is contracting, be careful not to “strangle the economy by pursuing the rate of disinflation.”

And the market perceives the same, having received him with a declaration of love, practically, but, on the other hand, making clear to the president his demand for a reduction in the tax burden.Reducing fiscal costs is key to achieving progress“they say. However, the Government does not seem ready to move forward in that direction because, as an official source stated to Ambit“You can’t lower taxes if you don’t lower spending.”

The market supports zero deficit but is concerned about the economy

On the other hand, beyond that supports the zero deficit and the surplus path, the market made it clear to Milei that it is alert for the recession and stressed the need to reinvest the result of not having a deficit in infrastructure and to boost public works, as well as to work to guarantee physical and legal security in Argentina to encourage investment and also to “take care of social welfare” so as not to suffocate the economy.

In addition, is concerned about how the 2025 maturities will be paidbut the Government points out that “it is unusual that they are proposing this when we are paying for 2024 with a situation worse than that expected for next year.”

On the other hand, Milei’s statement that they will not take any measures that put the fiscal surplus at risk resonated in the stock market hall“We are not going to take any unnecessary risks,” he said in an informal chat with this media. Pablo Quirno, Secretary of Financeconfirming the president’s words.

And he added that “We must think of the current context as a new one Because, for example, there has never been a financial surplus in Argentina and that completely changes the dynamic.”